Every week I meet would be real estate moguls who are bent on buying and selling properties for profit. The trend is called "house flipping" and it has become a nationwide wild fire amongst entrepreneurs and established business people alike. But there are many things to consider before you go off and start buying houses.
Following are some of the key points to look over before you set out to buy your first real estate investment propertly.
Buy Low, Invest High
It stands to reason that you are going to have to sink some money into your investment property. But just how much you put in will depend on several factors, the least of which is the current condition of the house. If you are buying a foreclosure, then consider that the reason you are getting the super good deal is because the bank does not want to invest the money needed to get theirs back. Instead, it is cheaper for them to sell you the house at a loss. That means you may have some major work to do.
The major issues you face in a cheap house could range from structural issues, all the way to new plumbing or electrical or all three! You should be prepared to invest a few thousand dollars before you even get to the fun part of painting and decorating.
Location Still Matters
That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won't matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.
Make The Big Things New
If you want a faster sale, then you definitely need to make sure the new homeowner is secure in the fact that he or she won't have to make any major repairs any time soon. What I mean is that you should definitely give them a new furnace, central air system, water heater and roof. If these things are brand new, it will give your potential buyer piece of mind. These items will also help your house sell before the others in the neighborhood that don't have these improvements.
Provide A Home Warranty
The final piece of this house flipping puzzle is the actual square footage. If you have an unfinished basement in your house, go ahead and add in a bath and bedroom or two. The more bathrooms and bedrooms you have, the much better chance of finding a family to buy your home.
These are just a few simple tips that will help you should you decide to become the next real estate millionaire. Who knows, maybe you'll get your own TV show too!
Following are some of the key points to look over before you set out to buy your first real estate investment propertly.
Buy Low, Invest High
It stands to reason that you are going to have to sink some money into your investment property. But just how much you put in will depend on several factors, the least of which is the current condition of the house. If you are buying a foreclosure, then consider that the reason you are getting the super good deal is because the bank does not want to invest the money needed to get theirs back. Instead, it is cheaper for them to sell you the house at a loss. That means you may have some major work to do.
The major issues you face in a cheap house could range from structural issues, all the way to new plumbing or electrical or all three! You should be prepared to invest a few thousand dollars before you even get to the fun part of painting and decorating.
Location Still Matters
That super low price you get on the house may be in part to the fact that it is in disrepair, but it also might be because of the fact that the neighborhood is in decline. Keep in mind that if the neighborhood is known as unsafe, then it won't matter how cheap you sell the house, no one will want it. If you can, hold out for a super good deal in a super nice neighborhood. This is always a good investment.
Make The Big Things New
If you want a faster sale, then you definitely need to make sure the new homeowner is secure in the fact that he or she won't have to make any major repairs any time soon. What I mean is that you should definitely give them a new furnace, central air system, water heater and roof. If these things are brand new, it will give your potential buyer piece of mind. These items will also help your house sell before the others in the neighborhood that don't have these improvements.
Provide A Home Warranty
The final piece of this house flipping puzzle is the actual square footage. If you have an unfinished basement in your house, go ahead and add in a bath and bedroom or two. The more bathrooms and bedrooms you have, the much better chance of finding a family to buy your home.
These are just a few simple tips that will help you should you decide to become the next real estate millionaire. Who knows, maybe you'll get your own TV show too!
About the Author:
House flipping is not that difficult. If you want to learn about lawn care, then visit our blog and learn all about lawn treatments.
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